Hospital Operator Nu-Med Ends Chapter 11

Nu-Med Inc., an Encino hospital operator, announced it has emerged from Chapter 11 bankruptcy reorganization.

In its new form outlined in the reorganization plan, Nu-Med and its subsidiary, PsychGroup Inc., will be run by a new team of officers and directors. Heading it will be John V. Koerber, an independent consultant in bankruptcy investments, who will act as the company’s president and chief executive officer.

The reorganization plan also calls for the repayment of the company’s Chapter 11 administrative claims to be secured by liens on certain assets, including the cash and common stock of PsychGroup that would otherwise be distributable under the reorganization plan. As a result, no shares of stock or cash will be distributed until those claims have been paid down to certain levels.